US yields dip after softer than expected jobs market data
By David Randall
NEW YORK, July 3 (Reuters) -Benchmark 10-year Treasury yields dipped Wednesday after slightly higher than expected jobless claims data suggested that the labor market was softening.
Initial claims for unemployment rose 238,000 the week that ended June 29, slightly above expectations of 235,000, and up from 234,000 the prior week, the Labor Department said.
The rising jobless claims followed data released earlier in the day by ADP that showed private payrolls increased by 150,000 jobs in June, below consensus estimates of an increase of 160,000 jobs.
The labor market's resilience in the face of interest rates at nearly two-decade highs has been cited by the Federal Reserve as one reason why it has yet to cut rates. Futures markets are pricing in roughly 45 basis points in cumulative rate cuts by the end of the year.
The yield on the benchmark U.S. 10-year Treasury note US10YT=RR fell 2.4 basis points to 4.412%. The yield on the 30-year bond US30YT=RR fell 3.8 basis points to 4.571%.
The two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations, rose 1.7 basis points to 4.756%.
A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes US2US10=RR, seen as an indicator of economic expectations, was at a negative 34.6 basis points. It had touched its least shallow inversion since May earlier in the week.
Reporting by David Randall; editing by Barbara Lewis
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
